Multi-million pound contract wins and acquired Singl.eView business drive revenue up 63%; earnings increased substantially with EBITDA up 55%
London, 23 August 2005 … Intec Telecom Systems PLC (“Intec” or “the Company”), a leading supplier of business and operations support systems (BSS/OSS) to the global telecoms industry, today announced its unaudited results for the nine months ended 30 June 2005 (“9m 2005”).
Revenue and earnings, in line with market expectations, are substantially ahead of the same period last year, as a result of both the Singl.eView acquisition in August 2004 and a growing contribution from large, multi-product transactions. Continuing investment in product development, distribution channels and Intec’s professional services capability, backed by strong cost management, has maintained sales momentum and delivery capability. Recent multi-million pound contract wins, with high activity levels in new business development, underline the continuing strength of the enlarged business.
Financial Highlights
- Revenue up 63% to £76.5m (9 months ended 30 June 2004 (“9m 2004”): £46.9m).
- EBITDA before exceptionals up 55% to £8.5m (9m 2004: £5.5m).
- Services revenue up 121% to £30.4m (9m 2004: £13.8m).
- Adjusted PBT up 52% to £5.8m (9m 2004: £3.8m).
- Adjusted EPS up 12% to 1.61p (9m 2004: 1.44p).
- Loss before tax of (£7.7m) (9m 2004: (£2.2m)) after £12.3m amortisation charge (9m 2004: £6.0m).
- Operating cash inflow of £3.8m (9m 2004: inflow of £0.1m).
- Net cash & equivalents of £28.4m (30-Jun-04: £12.8m).
Operational Highlights
- Increase in volume of multi-product and multi-million pound contracts.
- Notable competitive wins including VimpelCom, The Carphone Warehouse and a major US operator.
- Increase in customer base to 715 installations within almost 500 customers (30-Jun-04: 585 installations with 409 companies).
- Continuing investment helps Intec retain technical leadership in core product areas.
- New technical facility opened in Bangalore, India.
“Intec’s staff and management team continues to execute very satisfactorily against its business goals, within a global marketplace that remains highly competitive,” said Intec’s non-executive Chairman, John Hughes. “The Singl.eView acquisition, which was completed last year, has proved to be the transformational transaction that was expected. We have successfully turned around the business, and it continues to go from strength to strength. The associated evolution to a primarily Percentage of Completion revenue recognition model is being well managed. The Company, its staff and products are well positioned to maximise the growth opportunities that lie ahead.”
“The multi-product, multi-million pound contract wins we are achieving, and our growing participation in leading-edge projects, indicate the continuing momentum and potential of the business,” added Intec CEO, Kevin Adams. “Intec has an unmatched product range, a substantial and proven global delivery capability, and a broad customer base. These are vital assets in our quest for continued growth in the OSS/BSS market.”
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Notes:
- A conference call for analysts will be held at 2.00pm on Tuesday 23 August 2005. Please contact Financial Dynamics for details.
- Digital images of the Intec executive directors can be downloaded from www.vismedia.co.uk.
- These are the last full Q3 results issued by Intec. From next financial year, as a result of new regulations affecting London listed companies, the Company will issue half and full year results only.
- Investor website can be found at www.intecbilling.com
For more information, please contact:
Kevin Adams, Chief Executive Officer, Intec Telecom Systems PLC
Tel: +44 (0)1483 745800
Robert Gibb, Investor Relations Manager, Intec Telecom Systems PLC
Tel: +44 (0)1483 745941 or 745800; Mob: +44 (0)7876 656 896
Email: robert.gibb@intecbilling.com
James Melville-Ross/ Edward Bridges/ Cass Helstrip
Financial Dynamics
Tel: +44 (0)20 7831 3113; Email: intec@fd.com
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